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Comm mining: Par panel asks CIL to reassess its strength, weaknesses

Press Trust of India  |  New Delhi 

In the wake of government opening up the to the private sector companies for commercial use, a parliamentary panel today said that state-owned CIL should review its areas of strength and weaknesses in order to remain competitive in the sector.

"Very recently a decision on opening up of commercial for private sector has been taken moving from an era of monopoly of India Ltd to competition.

"In this background, the Committee desire the Ltd to reassess their areas of strength and weaknesses to stay competitive in the coal sector, particularly, when use of other eco-friendly options are being encouraged," Standing said in its latest report tabled in the Parliament today.

In a major reform in the coal sector since its nationalisation in 1973, the government had last month allowed private companies to mine the fossil fuel for commercial use, ending the monopoly of state-owned Ltd (CIL).

"Regarding the efforts for increasing the production of coal , the Secretary, Coal during the oral evidence held on 22.2. 2018 stated that the government has decided to allow commercial by private players also. This will also result in rise in production of coal in the country," the report further said.

The opening up of commercial for private sector is the most ambitious coal sector reform since the nationalisation of this sector, Coal and had earlier said.

Currently,private sector is allowed coal mining for captive use only.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 13 2018. 16:30 IST